LIC Housing Finance Q3 net profit jumps 39% to Rs 213.49 cr

Controversy-mired LIC Housing Finance Wednesday posted an impressive 39 percent jump in its net profit at Rs 213.49 crore for the third quarter of FY'11, which saw its CEO getting arrested in the bribe-for-loans scam.

Mumbai: Controversy-mired LIC Housing Finance Wednesday posted an impressive 39 percent jump in its net profit at Rs 213.49 crore for the third quarter of FY'11, which saw its CEO getting arrested in the bribe-for-loans scam.

The company's net profit in the October-December period in 2009 was Rs 153.57 crore and its newly-appointed chief executive VK Sharma said the numbers would have been much better had it not been for the controversy.

"It would have been much, much better if not for the incident (bribes for loan scam)," Sharma said.

The housing finance subsidiary of life insurance giant LIC did not disburse to project proposals from corporates through December in the aftermath of the scandal unearthed by the CBI in late November, Sharma said.

Disbursements to projects will start Thursday, he added.

Ramachandran Nair, the then CEO of the company, was arrested, along with seven others in November, for allegedly giving loans against bribes.

Sharma was put incharge of operations as a fall-out.

He said all the loan accounts of nine corporates totalling Rs 389-crore, which are under scrutiny, are performing well and in fact, two of the corporates having an outstanding of around Rs 120-crore have also expressed a desire to prepay.

PTI

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